Startups are basically newly emerged business ventures that are dedicated at creating a business based on viable business models mostly aimed at providing products and services to satisfy the requirements of the consumers in the marketplace or solve a problem faced by the consumers in the marketplace. Startups are a growing trend in the Indian Subcontinent over the last decade with businesses looking after sectors ranging from finance, education, digital marketing, social media marketing, travel, insurance, hospitality industry and even healthcare to name a few. Starting a business in India is not an easy task and involves several risks and concerns. The young entrepreneurs with their proficient ideas in handling every issues and requirement of the consumers in the marketplace have been able to develop thriving businesses across the Indian Subcontinent in a diversified range of fields.
What are the mistakes these young entrepreneurs generally make?
As said correctly – “Imperfection is the only way to perfection”, everyone ranging from small startups to huge VC funded startups tend to make quite a lot of mistakes. These mistakes probably occur due to the lack of appropriate market research, analysis of SWOT of the business model in the marketplace or even adopting twisted means to succeed. However, starting a business requires them to overcome such mistakes thereby increasing their market capitalization and value.
Common mistakes the young entrepreneurs of start-ups make –
- Afraid of a fiasco – Failing in starting a businessor establishing the same in the marketplace does not necessarily mean that you need to lose hope and give up. Facing fears and taking a leap of faith even if you fail is the correct procedure for success.
- Being organized – Starting a businessin itself is a mammoth task and then keeping the same organized and as per a correct order of operational hierarchy is also important. Several productive and non-productive jobs keep happening in and around a startup. Keeping all of them organized – what to do, when to do and how to do it are the cornerstones of a successfully organized startup.
- Misinterpretation of the marketplace – Starting a businessand then running it without appropriate analysis generally tends to end a business even before its commencement. The promoters need to access the correct forms of requirements and demands of the marketplace, the exact target audience and estimating the accurate prices prior to starting a business through appropriate market research and competitive analysis.
- Appropriate Delegation and NO Micromanagement – it has been rightly said “Jack of all trades and master of none”. On just starting a business, promoters often tend to avoid delegation and try doing everything on their own. Not delegating activities within the business might save operational costs in the beginning but in the long run it compromises with the quality of work being delivered.
- Smart hiring – Hire when required and as per the correct requirement and profile for the post being hired for
- Money is all that matters – it is very important to access the customer requirement and product-market-fit rather than blindly raising funding while starting a business
- Bypassing contracts – while starting a businessmost promoters tend to avoid contracts. However, things could go haywire if documents and settlements are not in the correct order.
- Self-salary – Pay yourself the correct and deserving salary. The salary paid should not be exorbitant since it creates demoralization among employees
- Don’t be a tortoise – Move fast and smart. Being slow at every point of starting a business doesn’t prove to be effective in the long run. Take fast and smart but not impulsive decisions.
- Maintain correct pace – Move at a correct pace after starting a business. Don’t venture into partnerships for the sole sake of money and funding. It is important to find a person to choose as a partner who would share similar views and morals.
An effort to minimize such mistakes would eventually help a start-up to grow and flourish in the marketplace to meet customers’ requirements and solve problems.